Moody's Rating for ExxonMobil

RATING

Aaa

Rating

Aaa

Rating Update

AFF

Date of Rating

2/25/2016

Rating Office

USA

MOODY'S ANALYTICS RISK SCORE

2

Moody’s Daily Credit Risk Score is a 1-10 score of a company’s credit risk, based on an analysis of the firm’s balance sheet and inputs from the stock market. The score provides a forward-looking, one-year measure of credit risk, allowing investors to make better decisions and streamline their work ow. Updated daily, it takes into account day-to-day movements in market value compared to a company’s liability structure.

Exxon Mobil Corp. engages in the exploration, development, and distribution of oil, gas, and petroleum products. It operates through the following segments: Upstream, Downstream, and Chemical. The Upstream segment produces crude oil and natural gas. The Downstream segment manufactures and trades petroleum products. The Chemical segment offers petrochemicals. The company was founded by John D. Rockefeller in 1882 and is headquartered in Irving, TX.

Exxon Mobil Stock Price History by Markets Insider

Exxon Mobil, the 5th largest energy company in the world, is a product of the merger of Exxon and Mobil, both of which were descendants of John D. Rockefeller’s Standard Oil. Exxon Mobil stock price has hit significant heights since the merger. With Exxon Mobil stock price experiencing notable peaks in 2005, 2007 and 2014.

But back in 1911 the federal government dissolved Rockefeller’s monopoly under the Sherman Antitrust Act, enacted 18 years prior.

Over the next decades, remnants of Standard Oil proliferated as demand for petroleum products skyrocketed. Eventually, four of those descendants would merge to form the Mobil Oil Corporation in 1966.

Exxon Chemical Company—originally known as Enjay (A variant of Standard Oil of New Jersey)— was established in 1965. Over the following decade, it would absorb two others: Enco and Esso.

Finally, Exxon and Mobil would punctuate an era of corporate concentration by combining to form Exxon Mobil Corp. in 1998 with a $73.7 billion merger — the largest ever corporate merger at the time.

In 1999, the Federal Trade Commission formally approved the merger, reuniting the two largest remnants of Standard Oil.

The Exxon merger was divided roughly 70% Exxon and 30% Mobil shareholders, with Mobil investors receiving 1.32015 shares of Exxon for each Mobil share. Exxon’s Chairman and CEO Lee Raymond remained in those positions at the new company, with Mobil CEO Lucio Noto becoming vice-chairman. The conglomerate’s headquarters would be Irving, Texas.

Average returns for the Exxon Mobil stock have averaged near 14% for nearly every year of its 47-year history (including pre-merger years), and the company has even managed to pay solid dividends even during tough times.

In 2001, Exxon Mobil announced its first 2-for-1 stock split as a combined company. There have yet to be any other Exxon Mobil stock splits since then.

A huge portion of Exxon Mobil stock price gains come from two distinct time periods: the mid-to-late 2000’s as the price of oil skyrocketed to nearly $150 a barrel. But the financial crisis would hit soon after, sending oil plunging to below $40.

By the early 2010’s, another rebound of oil prices helped ExxonMobil stock price tremendously.

While fluctuations in oil prices certainly affect share prices of ExxonMobil, the company is well insulated from many market volatility thanks to its vertical integration. This means some divisions—like refinery operations—can supplement others—like exploration and drilling—during tough times for either area.

Other than a brief dip around September 2015, when Exxon Mobil stock price descended to $70 per share, Exxon Mobil stock price continues to rise.

2017 brought the highest price for Exxon Mobil stock of $79.25 soon after a new CEO, Darren Woods, took the helm on January 1, 2017.